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Published 17:29 IST, May 2nd 2024

Blue Star reports surge in Q4 profit driven by robust AC demand

India is currently grappling with a scorching summer, prompting a surge in sales for products like ACs and coolers.

Reported by: Business Desk
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Blue Star AC | Image: Flipkart
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Blue Star Q4 earnings: Air-conditioner (AC) manufacturer Blue Star witnessed surge in its fourth-quarter profit, soaring by over 46 per cent on Thursday. The increase was fuelled by heightened demand for its AC units as consumers prepared for an exceptionally hot summer.

India is currently grappling with a scorching summer, prompting a surge in sales for products like ACs and coolers. In March, Blue Star announced the launch of numerous new home AC products, targeting 25 per cent revenue increase from this segment for the summer season, compared to a 5 per cent rise last year.

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Peer company Havells India also reported higher quarterly profit, driven by strong demand for room ACs and fans, while Voltas is expected to release its results next week.

Blue Star, headquartered in Mumbai, saw its consolidated profit before exceptional items and tax soar to Rs 214 crore in the quarter, up from Rs 146 crore a year ago. However, its net profit witnessed decline of nearly 29 per cent, primarily due to a one-time gain of Rs 171 crore recorded in the year-ago quarter from the sale of land. Meanwhile, Blue Star's revenue from operations surged by nearly 27 per cent, with its AC and commercial refrigeration business witnessing 35 per cent increase in revenue.

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Chairman and Managing Director Vir S. Advani remarked, "The summer season has also begun well, and we anticipate significant demand for room air conditioners and commercial refrigeration products to continue."

Blue Star shares ended 1.82 per cent lower at Rs 1,468 after its earnings announcement.

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(With Reuters inputs)
 

17:29 IST, May 2nd 2024